Cabinet clears Rs. 15,000 cr. NMP-linked FDI proposal

Cabinet clears Rs. 15,000 cr. NMP-linked FDI proposal

Part of: GS Prelims and GS- III –  Infrastructure 

In news The Cabinet Committee on Economic Affairs (CCEA) cleared a foreign direct investment (FDI) proposal entailing an investment of up to Rs. 15,000 crore in Anchorage Infrastructure Investment Holding (AIIH) Ltd.

• It is a company incorporated to invest in the infrastructure and construction development sectors.
• The government said the investment would prove to be a “significant boost to the recently announced National Monetisation Pipeline (NMP)” as AIIH had proposed downstream investments in some of the sectors covered under the NMP.

What is National Monetisation Pipeline (NMP)?

• The government aims to raise $81 billion by leasing out state-owned infrastructure assets over the next four years (from FY22 to FY25) through National Monetisation Pipeline (NMP).
• Key features of the National Monetisation Plan:
  • The NMP’s roadmap has been formulated by NITI Aayog in consultation with infrastructure line ministries, under the ‘Asset Monetisation’ mandate of the Union Budget 2021-22.
  • NITI Aayog has a Public Private Partnership Cell and has engaged transaction advisors to handhold any ministry for any support it needs in pursuing the monetisation roadmap.
  • The sectors in which assets are being identified to monetise include roads, ports, airports, railways, power generation and transmission, telecom, warehousing, gas & product pipeline, mining, stadium, hospitality and housing.
  • For now, the government has only included the assets of infrastructure line ministries and Central Public Sector Enterprises (CPSEs) working in the infrastructure sectors. 
  • Monetisation through disinvestment and monetisation of non-core assets have not been included in the NMP.

News Source: TH